Nestlé and Starbucks close global licensing deal

Nestlé and Starbucks have announced the closing of a deal granting Nestlé the perpetual rights to market Starbucks consumer packaged goods and foodservice products globally, outside of Starbucks’ coffee shops. “This global coffee alliance with Nestlé is a significant strategic milestone for the growth of Starbucks,” says Kevin Johnson, President and CEO of Starbucks. “Bringing together the world’s leading coffee retailer, the world’s largest food and beverage company, and the world’s largest and fast-growing installed base of at-home and single-serve coffee machines helps us amplify the Starbucks brand around the world while delivering long-term value creation for our shareholders.” The two companies will work closely together on the existing Starbucks range of ground coffee and whole beans, as well as instant and portioned coffee. The partnership will also capitalise on the experience and capabilities of both with the goal of enhancing Starbucks’ product offerings for coffee drinkers globally. “This partnership demonstrates our growth agenda in action, giving Nestlé an unparalleled position in the coffee business with a full suite of innovative brands. With Starbucks, Nescafé and Nespresso we bring together the world’s most iconic coffee brands,” says Mark Schneider, Nestlé CEO. The agreement significantly strengthens Nestlé’s coffee portfolio in North America. It also unlocks global expansion in grocery and foodservice for the Starbucks brand, utilising the global reach of Nestlé. Approximately 500 Starbucks employees in the United States and Europe will join the Nestlé family, with the majority based in Seattle and London. The international expansion of the business will be led from Nestlé’s global headquarters in Vevey, Switzerland. The agreement covers Starbucks packaged coffee and tea brands, such as Starbucks, Seattle’s Best Coffee, Teavana, Starbucks Via Instant, Torrefazione Italia coffee and Starbucks-branded K-Cup pods. The deal excludes ready-to-drink products and all sales of any products within Starbucks coffee shops.

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